What is TD Ameritrade Holding Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, TD Ameritrade Holding's Probability of Financial Distress (%) is 50.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of TD Ameritrade Holding's Probability of Financial Distress (%)
For the Capital Markets subindustry, TD Ameritrade Holding's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TD Ameritrade Holding's Probability of Financial Distress (%) Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, TD Ameritrade Holding's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where TD Ameritrade Holding's Probability of Financial Distress (%) falls into.
TD Ameritrade Holding Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 50.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For banks, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
TD Ameritrade Holding (TD Ameritrade Holding) Business Description
Traded in Other Exchanges
N/A
Address
200 South 108th Avenue, Omaha, NE, USA, 68154
TD Ameritrade is a leading retail brokerage and advisor services firm. Its largest shareholder is Toronto-Dominion Bank, which beneficially owns more than 40%. The firm offers trading in stocks, bonds, options, and other asset classes. Recently, TD Ameritrade derived approximately 55% of its revenue from interest-rate-related income and fees, 35% from commissions and transaction fees, and 10% from investment product and other revenue. Practically all of the company's revenue is generated in the United States. TD Ameritrade has a pending merger with Charles Schwab that is expected to close in the second half of 2020.
Executives
| Lorenzo A Bettino |
director |
|
| Wilbur J Prezzano |
director |
13515 BALLANTYNE CORPORATE PL, CHARLOTTE NC 28277 |
| Joseph H Moglia |
director |
AMERITRADE HOLDING CORP, 4211 S 102ND ST, OMAHA NE 68127 |
| Todd M Ricketts |
director |
C/O AMERITRADE HOLDING CORP, 4211 SOUTH 102ND ST, OMAHA NE 68127 |
| Brian M Levitt |
director |
C/O DOMTAR CORPORATION, 234 KINGSLEY PARK DRIVE, FORT MILL SC 29715 |
| V Ann Hailey |
director |
THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Allan R Tessler |
director |
C/O EPOCH HOLDING CORPORATION, 640 FIFTH AVENUE, NEW YORK, NY 10019 |
| Dominion Bank Toronto |
10 percent owner |
66 WELLINGTON STREET WEST, 12TH FLOOR, TD TOWER, TORONTO, ONTARIO A6 M5K 1A2 |
| Td Group Us Holdings Llc |
10 percent owner |
251 LITTLE FALLS DRIVE, WILMINGTON DE 19808 |
| Mark L Mitchell |
director |
AMERITRADE HOLDING CORP 4211 S 102ND ST OMAHA NE 68127 |
| Td Luxembourg International Holdings S.a R.l. |
10 percent owner |
46A, AVENUE JOHN F. KENNEDY LUXEMBOURG N4 L-2951 |
| Irene R Miller |
director |
C/O BARNES & NOBLE INC, 122 FIFTH AVE, NEW YORK NY 10011 |
| Karen E. Maidment |
director |
TD AMERITRADE HOLDING CORPORATION 6940 COLUMBIA GATEWAY DR., SUITE 200 COLUMBIA MD 21046 |
| Steven M. Quirk |
officer: EVP, Trader Group |
C/O ROBINHOOD MARKETS INC., 85 WILLOW ROAD, MENLO PARK CA 94025 |
| Jon C. Peterson |
officer: Interim CFO |
200 S. 108TH AVE OMAHA NE 68154 |
TD Ameritrade Holding (TD Ameritrade Holding) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AMTD has been successfully added to your